Article 37-1. Replacement of the collateral and registration of collateral rights on shares during the reorganization of banks in the form of merger The Law on the Securities Market

Home / RLA / Article 37-1. Replacement of the collateral and registration of collateral rights on shares during the reorganization of banks in the form of merger The Law on the Securities Market

1. When banks are reorganized in the form of merger, the ownership right of the shareholder (who is the pledgor) to the shares of the merged bank, the rights to which are the subject of the pledge, is terminated on the basis of the acquisition of these shares by the bank to which the merger is being carried out.

2. When shares are placed to shareholders (who are pledgors) of banks being reorganized in the form of a merger, the rights on shares of the banks being reorganized are replaced by the rights on the shares being placed, and the right of pledge extends to the rights on the shares being placed to ensure the fulfillment of the relevant obligations of shareholders (who are pledgors) of the banks being reorganized, which are secured by the pledge of rights on shares of the banks being reorganized.

3. Actions with shares of reorganized banks and shares placed in the process of reorganization are performed without the consent of the pledgee.

4. The specifics and procedure for registering the pledge of rights on shares of banks when they reorganize in the form of incorporation are established by the legislation of the Republic of Kazakhstan.

The Law of the Republic of Kazakhstan dated July 2, 2003 No. 461.

 This Law regulates public relations arising in the process of issuing, placing, circulating and redeeming equity securities and other financial instruments, the specifics of the creation and operation of securities market entities, defines the procedure for regulating, controlling and supervising the securities market in order to ensure the safe, open and effective functioning of the securities market, and the protection of investors' rights. and holders of securities, fair competition of securities market participants.

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Republic of Kazakhstan

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